Macquarie has initiated protection on Trent Ltd. with an ‘Outperform’ ranking and a goal value of Rs 7,000, providing a 35% upside from present ranges. The brokerage highlights Trent as a standout participant in India’s retail house, particularly throughout the worth to mid-premium vogue phase, and expects this progress to proceed, buoyed by a number of tailwinds.
Trent stands out in Asia’s vogue retail sector, surpassing friends in progress, returns, and stock administration, the brokerage stated in its be aware on Thursday. Over monetary yr 2023-2025, Trent has achieved a formidable 45% gross sales CAGR, margin growth, and a 3x improve in Return on Capital Employed, reaching 30%.
The corporate’s strategic steadiness between vogue threat and profitability, pushed by frequent type drops and a sturdy growth technique by way of owned and franchised shops, has contributed to stellar efficiency, based on Macquarie.
Trent advantages from its robust provide chain and native design capabilities, developed by way of years of expertise in India’s vogue market, based on the be aware. These benefits are powerful to copy, giving the corporate a sustainable edge.
